Burberry set to unveil slip in profits as market cools

ROGER BAIRD

Fashion retailer Burberry is expected to see full-year profits take a tumble this week, as it battles with a slowdown in luxury sales sparked by China’s economic woes.

City forecasts suggest that the group – famous for its trench coats and check scarves – will reveal adjusted pre-tax profits down by 7.5 per cent to about £420 million as the famous brand hits tougher times after enjoying several years of growth.

Burberry revealed last month that its fourth-quarter sales slipped 5 per cent amid lower spending by Chinese tourists in continental Europe and a collapse in the Hong Kong luxury market.